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On the day of the runoff presidential election in Brazil, amid expectations of a victory for the incumbent head of state, local companies mass-used stablecoins and Bitcoin. Businessmen utilized cryptocurrency to protect their assets from the depreciation of the national currency, as trading data from exchanges demonstrate.
The main surge in activity on Sunday, October 25, occurred on the crypto exchange Mercado Bitcoin: the trading volume of the USDT stablecoin grew by nearly 800% compared to the previous week and more than tripled the average figure of the previous four Sundays. Bitcoin turnover on the platform jumped by 865% relative to October 18. 78% of the trading volume on the 25th was accounted for by corporate accounts, while the share of retail clients amounted to only 22%. According to the exchange, corporate clients usually keep up to 15% of their assets on the platform.
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Growth in activity was also observed on other platforms. According to data from the Biscoint service, which tracks prices and trading volumes on ten platforms including Binance and Mercado Bitcoin, USDT turnover against the Brazilian real on October 25 grew by 150% compared to the previous Sunday, while USDC trading volume grew by 318%. On Monday, October 26, the combined turnover of USDT and USDC reached 1.84 billion reals (approximately $350 million)—65% higher than the previous week’s figure. Bitcoin trading volume increased more than ninefold—to 1,336 BTC.
On Binance, Bitcoin turnover against the real grew by 370%. As a result, the first cryptocurrency appreciated by 9.4% against the real, but simultaneously decreased by 0.2% against USDT—reflecting the revaluation of the Brazilian currency in response to investors’ reactions to the election results. Business fears were confirmed: on Monday, the Brazilian stock market index Ibovespa plummeted by 14%—the worst result since the March 2020 pandemic period—and the dollar exchange rate rose by more than 8% against the real, showing the largest daily increase since 1999. Incumbent President Lula da Silva won the election.
The Bitcoin-to-stablecoin ratio on crypto exchanges is rising against the backdrop of falling USDT reserves to an annual minimum, stated CryptoQuant platform analyst Yavuz Akbay. The ratio of Bitcoin volume to stablecoins on all exchanges is approximately 0.0000465.
